Taxation in Accumulation Phase

As previously outlined, concessional contributions, where the contributions are made by an employer or a tax deduction is claimed on the contributions by the contributor, are subject to a 15% contributions tax.  The contribution received by a super fund is actually included within its assessable income.

Any investment income in the accumulation phase is also included in the assessable income of the super fund and subject to a maximum tax rate of 15%.

Super funds receive a 1/3 tax discount on capital gains where the asset is held for longer than 12 months. This brings the effective tax rate on capital gains within super funds to only 10% (ie. two thirds x 15%).